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Dollar Index – USDX Technical Update 14/4/2012

The USDX has seen a high momentum move to the upside from the 79.21 weekly range lows (previous daily highs from the 28th/29th March). This comes after our previous dollar index update said that “any failure to hold at current levels may see a move down to the 79.32 area”.
The week was heading for a lower USDX but the 60 pip (111% of the ADR) upside candle on Friday has taken the dollar index into positive territory on a W1 basis. The weekly dollar index chart last week showed a bullish engulfing candle so the recovery on Friday was in-line with this price action reversal setup. See post for further analysis: